CIS/ Sole Trader Self employed

Mummy_Bean

Just wondering any one out there a sole trader or working on the CIS (Construction Industry Scheme) and got a mortgage?

Just following earlier threads we can now only get a mortgage on hubbys salary who is a self employed contractor Plumber.

Ive read you can get specialist mortgages that take into account most recent earnings rather then looking at the past few years accounts.

He does have 2 1/2 years worth of accounts and monthly invoices, but he recently got a pay rise so would be really helpful if they looked at the past 6 months earnings rather then last years profit.

I know Halifax give special treatment for CIS workers just wondering if any one else did?

TIA

Thrugelmir

Mummy_Bean wrote: »

so would be really helpful if they looked at the past 6 months earnings rather then last years profit.

Annual figures give meaningful comparison. Selective periods can be doctored to mislead.

amnblog

One to engage a whole of market mortgage broker, options depend on a number of factors.

Mummy_Bean

He gets paid a fixed day rate and in the 2 1/2 years has worked 5-6days a week for the same company. but 3months ago said company increased his day rate so figs for 2013-2014 will be significantly higher then past 2 years so was hoping to use these.

He gets monthly invoices from the company and can provide a letter from the director stating they have at least 2 years worth of work going forward.

Mortgage_Mark_2

The lender that you mentioned in your other thread will ask for the last six months' payslips, not a year.

leveller2911

Mummy_Bean wrote: »

Just wondering any one out there a sole trader or working on the CIS (Construction Industry Scheme) and got a mortgage?

Just following earlier threads we can now only get a mortgage on hubbys salary who is a self employed contractor Plumber.

He does have 2 1/2 years worth of accounts and monthly invoices, but he recently got a pay rise so would be really helpful if they looked at the past 6 months earnings rather then last years profit.



TIA

Doesn't sound like he is self employed at all. He works for the same company for the last 2.5 years, recently they gave him a pay rise and he invoices monthly and the company he works for can write a letter stating they have at least another 2 years work for him and the company have increased his day rate.

Your husband should possibly be employed by the company. Currently they are avoiding paying the costs involved in employing a worker. His work status doesn't look to be self employed........He needs to check with HMRC with regards to his status.If they find he should have been employed the company can be heavily find and he can be liable for a fine.

The link below may be helpful.

http://www.hmrc.gov.uk/selfemployed/tmaemployed_or_self-employed.shtml

kingstreet

No. He's a CIS sub-contractor per the OP.

http://www.hmrc.gov.uk/cis/intro/con-or-sub.htm

leveller2911

kingstreet wrote: »

No. He's a CIS sub-contractor per the OP.

http://www.hmrc.gov.uk/cis/intro/con-or-sub.htm

According to HMRC and the OP's own words I'm not sure he is a sub contractor.

http://www.hmrc.gov.uk/new-cis/cis349.pdf

The OP's husband ticks more boxes for being employed than being self employed. Just because he has a CIS card doesn't mean he is a sub contactor and it never has. The main contractor/employer should use the HMRC guidelines to make the decision but its not black and white. HMRC advise people to contact them for a decision.

The OP's hubby is paid an hourly rate (which the contractor has increased) ,he works solely for this company for 2.5 years and they have said they have at least 2 years work for him. He is paid a fixed day rate so he doesn't fit the "price work" criteria. One of the things they look for is the amount of financial risk the subby is taking .This basically means he should be doing price work,supplying all materials, only using his own tools, setting his own pay rate,supplying his own van etc.

leveller2911

kingstreet wrote: »

No. He's a CIS sub-contractor per the OP.

http://www.hmrc.gov.uk/cis/intro/con-or-sub.htm

According to HMRC and the OP's own words I'm not sure he is a sub contractor.

http://www.hmrc.gov.uk/new-cis/cis349.pdf

The OP's husband ticks more boxes for being employed than being self employed. Just because he has a CIS card doesn't mean he is a sub contactor and it never has. The main contractor/employer should use the HMRC guidelines to make the decision but its not black and white. HMRC advise people to contact them for a decision.

"As a general guide as to whether a worker is an employee or self-employed; if the answer is 'Yes' to all of the following questions, then the worker is probably an employee:

• Do they have to do the work themselves?
• Can someone tell them at any time what to do, where to carry out the work or when and how to do it?
• Can they work a set amount of hours?
• Can someone move them from task to task?
• Are they paid by the hour, week, or month?
• Can they get overtime pay or bonus payment?

Mummy_Bean

No idea on the employed/self employed stuff- and atm he registered as self employed and pays his tax and NI that way - so surly that what the Mortgage company concerned with?? As far as I am aware every trademan he worked with it the past two years has been the same.

I have literally spent the week reading every lending criteria for all the banks I can think off and Halifax is the only one which mention the CIS scheme and using the last 6 months instead of an average of the last 2 years. So was just wondering if any one had heard of any other banks/building societies that I may have missed that do this.